Bitcoin Holds Strong at $9,300 But Turns Vulnerable For Bigger Decline

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is down more than 6% and it trimmed most its gains above $10,000 against the US Dollar. BTC price is currently holding the key uptrend support at $9,300, but it is vulnerable to a larger decline.

Bitcoin failed to continue higher and declined sharply below the $10,000 pivot level.
The price broke many supports near the $9,740 and $9,500 levels.
There was a break below a key bullish trend line with support near $9,735 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is currently holding a crucial uptrend support near the $9,300 level.

Bitcoin Price Nosedives

After a strong upward move above $10,000, bitcoin price failed to continue higher against the US Dollar. BTC formed a short-term top near the $10,366 level and recently started a strong decline.

It broke many supports near the $10,000 and $9,740 levels to enter into a bearish zone. Moreover, there was a break below a key bullish trend line with support near $9,735 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading well below $9,600 and the 100 hourly simple moving average. It tested the main uptrend support at $9,300 (the previous breakout zone) and traded as low as $9,299.

It is currently consolidating losses above the $9,300 and $9,400 support levels. An initial resistance is near the $9,550 level. It is close to the 23.6% Fib retracement level of the recent decline from the $10,366 high to $9,299 low.

It seems like there is a short term contracting triangle forming with resistance near $9,550 on the same chart. If there is an upside break above the $9,550 level, the price could face hurdles near the $9,600 level and the 100 hourly simple moving average.

The next major resistance is near the $9,740 level. The main hurdle is now forming near the $9,800 region or the 50% Fib retracement level of the recent decline from the $10,366 high to $9,299 low.

More Downsides in BTC?

The $9,300 support zone holds a lot of significance in the near term. If bitcoin fails to stay above the $9,300 support, it could spark another sharp decline.

An initial support is near the $9,000 level, below which there is a risk of a larger decline towards the $8,500 and $8,400 levels in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly moving away from the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Major Support Levels – $9,400 followed by $9,300.

Major Resistance Levels – $9,550, $9,600 and $9,740.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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